WHAT’S THE LATEST

Update as of May 29: The U.S. Court of Appeals for the Federal Circuit has issued an immediate temporary stay while it conducts a further review. Plaintiffs have until June 5 to respond to the government’s motion for the stay.

This legal action follows the May 28 decision by the U.S. Court of International Trade, which issued a ruling blocking a majority of President Trump’s proposed tariffs on a wide range of imported goods. The court halted the administration’s attempt to impose sweeping new tariffs on imports from multiple countries, ruling that the tariff actions exceeded the President’s legal authority granted under the International Emergency Economic Powers Act (IEEPA), the statute cited to justify these tariffs. The Trump Administration has already filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit.

WHAT WE KNOW

  • Scope of the Ruling:
    • Halted:
      • 20% tariffs under the IEEPA Fentanyl Executive Order on goods of China origin
      • 25% tariffs under the IEEPA Executive Order on Canada or Mexico
      • 10% country specific tariff on IEEPA Reciprocal Tariffs announced on “Liberation Day"
    • Not Affected: 
      • Tariffs on autos, auto parts, steel and aluminum remain in place. These tariffs were enacted under Section 232 of the Trade Expansion Act and are governed by a separate legal framework not impacted by this ruling.
      • Section 301 tariffs implemented on products of Chinese origin during the first Trump Administration.
      • Those currently threatened, but not yet imposed, on pharmaceuticals, semiconductors and other critical products.
  • The court’s ruling gives the Trump Administration 10 days to end the tariffs unless a stay is granted.  
    • A stay can be granted by either the Court of International Trade or the U.S. Court of Appeals for the Federal Circuit.

WHAT'S NEXT?

SEKO’s Customs & Compliance Team is closely monitoring this situation, specifically:

  • Actions by any court related to issuance of a stay, which would delay implementation of the Court of International Trade ruling
  • Any discussion from U.S. Customs which relates to implementation of ruling and its effect on future duty collection and/or refunds. We expect communication from U.S. Customs and Border Protection (CBP) to be limited until there is more clarity on whether a stay will be issued within next 10 days. 

We expect communication from CBP to be limited until there is clarity on the court’s instructions.

Take Action: Schedule a free 30-minute consultation meeting with our team of experts today to explore how we can keep your supply chain moving smoothly.

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.